- AUD / USD rallied well above the 0.6000 pivot area.
- Recently, there was a break above a falling channel with a resistance close to 0.6080 on the 4 hour chart.
- The NZD / USD is also showing some positive signs above the 0.5900 support area.
- Initial unemployment claims in the United States for the week ending April 04, 2020 could drop from 6,648,000 to 5,250,000.
AUD / USD technical analysis
After a successful close above 0.5800, the Australian dollar continued its recovery against the US dollar. AUD / USD has crossed the key resistance zone of 0.6000 to enter a positive zone
Looking at the 4-hour chart, the pair even settled above the level of 0.6080 and the simple moving average of 100 (red, 4 hours). Recently, there has been a downward correction from the high of 0.6214.
The pair traded below the 0.6120 support, but the 0.6000 support acted as a solid buy zone. As a result, there was a further increase and the pair passed a falling channel with a resistance close to 0.6080.
The pair is now trading well above 0.6120, with immediate resistance near the level of 0.6270 and the 200 simple moving average (green, 4 hours).
If there is a clear break above 200 SMA, the pair could even exceed the resistance of 0.6300. The next major stop for bulls could be the 0.6440 resistance zone.
Conversely, the pair could correct a fall of 0.6270 or 0.6300. On the downside, initial support is close to the 0.6100 level. The main support is close to 0.6000 and 100 SMA, below which the pair could start a new decline towards 0.5800.
Looking at EUR / USD, the pair is still above 1.0750 support and may correct higher. Likewise, the GBP / USD could exceed the resistance zone of 1.2500.
Upcoming economic releases
- British industrial production for February 2020 (MoM) – Forecast + 0.1%, compared with -0.1% previously.
- British manufacturing production for February 2020 (MoM) – Forecast of + 0.1%, against + 0.2% previously.
- UK GDP for February 2020 (MoM) – Forecast + 0.1%, down from 0% previously.
- Initial jobless claims in the U.S. – forecast 5250K, up from 6648K previously.
- Net change in employment in Canada March 2020 – Forecast -350KK, compared to 30.3K previously.
- Canada’s unemployment rate March 2020 – Forecast 7.2%, compared to 5.6% previously.